PSBs should consider shared technology to achieve economies of scale: RBI Dy Guv

Group 1: Digital Infrastructure and Innovation - Public sector banks (PSBs) should consider using shared technology platforms and jointly develop digital infrastructure to leverage economies of scale and reduce costs [1][3] - Innovation in PSBs is not only about new tools but also about smarter delivery methods [2][3] - The concept of a digital twin can help banks test changes and improve efficiency before implementing them in the real world [4][3] Group 2: Capital Management and Asset Quality - PSBs must hold forward-looking capital buffers that reflect their risk profile and growth ambitions, rather than just meeting regulatory requirements [5] - Asset quality should be managed with a preventive mindset, utilizing early warning systems and predictive analytics to identify potential stress [5] Group 3: Operational Resilience - Operational resilience is crucial for banks, as even short disruptions can erode customer trust and have systemic impacts [6] - Strengthening technology infrastructure, cyber safeguards, vendor oversight, and business continuity planning is essential for uninterrupted services [6] Group 4: Governance and Customer-Centricity - The future of PSBs should be built on five pillars: strong governance, financial resilience, innovation and adaptability, people and culture, and inclusive customer-centricity [7][8] - The banyan tree metaphor represents stability, resilience, and protection, which are essential qualities for PSBs [9][10]